Vale – Page 68 – Republic of Mining

Vale Shelves Potash Venture in Argentina to Preserve Cash – by Juan Pablo Spinetto (Bloomberg.com – March 11, 2012)

March 12, 2013

http://www.bloomberg.com/

Vale SA (VALE3), the third most valuable miner, mothballed a $5.9 billion potash venture in Argentina as the Brazilian company drops projects and writes down assets.

The Rio de Janeiro-based company’s decision was communicated to Argentina’s government today, according to an e- mailed statement. Vale’s shares rallied in Sao Paulo.

Work at Rio Colorado, billed to make Argentina the third- largest exporter of the crop nutrient, was suspended in January so Vale could reassess the project in light of inflation, exchange rate fluctuations and demands from provinces, Chief Executive Officer Murilo Ferreira said Feb. 28. Vale sought tax breaks and partners to make the venture more profitable.

“Major miners are continuing to shed assets, especially those that have greatly surpassed their cost expectations, and slash budgets,” said Robert Verderese, a trader at Knight Capital Group Inc. in New York. “I would expect more to come from Vale.”

Vale erased a loss to rise after the announcement 1.4 percent to 35.22 reais at the close of trading. The stock was the most traded by value on the Brazilian Bovespa index today at 84 percent of its three-month daily average volume.

Vale executive receives honour – by Star Staff (Sudbury Star – March 8, 2013)

March 8, 2013

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

A senior Vale executive in Sudbury has received the second annual Women in Mining Canada National Trailblazer Award. Samantha Espley, Vale’s general manager of mines and mill technical ser vices for its Ontario operations, was honoured during this week’s Prospectors & Developers Association of Canada conference in Toronto.

“I am humbled and honoured to receive this prestigious award from (Women in Mining) Canada,” Espley said in a release. “Mining has allowed me to have a challenging and rewarding career, and I think it’s incumbent on female professionals to promote mining as an attractive career choice to the next generation of young Canadian women.

“I look forward to seeing more women occupy senior management roles in our industry through the work of WIM and other industry partners.”

Espley graduated 25 years ago with an engineering degree. Since then, she has held a number of positions, including for the former Falconbridge Ltd. (now Xstrata) at its Quebec and Sudbury operations. She joined the former Inco (now Vale) in 1990, where she has held roles of increasing responsibility.

NEWS RELEASE: Women in Mining Canada: 2013 Trailblazer Award Recipient – Samantha Espley

March 1, 2013

Toronto, Ontario – 28 February 2013

Women are significantly underrepresented in the minerals exploration and mining industry. Several studies have identified that women are discouraged by a lack of role models in senior management; prompting Women in Mining (WIM) Canada to initiate the Trailblazer Award to highlight successful women and encourage more women to explore a career in the minerals sector.

Samantha Espley has been selected as the recipient of the 2nd annual Trailblazer Award, which recognizes women who have taken personal career risks and helped to advance the careers of other women. The presentation will be made at the 6th annual Women in Mining International reception, on March 5, 2013 at the Metro Toronto Convention Centre during the annual PDAC conference. Over 400 people are expected to be in attendance.

Samantha’s career progression is definitely a remarkable and inspiring climb for women in mining. Graduating with an engineering degree 25 years ago, she worked with Dome Limited in Northern Quebec, Denison-Potacan Potash Corporation in New Brunswick, and then moved to Falconbridge Ltd. working both in their Quebec and Sudbury operations.

Since 1990, she has worked for Inco Ltd. (now Vale) where she has held roles of increasing responsibility, currently leading a multi-disciplinary group of mining and mineral processing engineers, geologists, metallurgists, technologists and other technical staff supporting Vale’s mining and milling operations in Sudbury.

Vale Has Record Quarterly Loss on $5.66 Billion Writedowns – by Juan Pablo Spinetto (Bloomberg.com – February 27, 2013)

February 27, 2013

http://www.bloomberg.com/

Vale SA (VALE3), the world’s largest iron- ore producer, posted a record quarterly loss after writing down the value of some of its assets. Profit missed analysts’ estimates on an adjusted basis.

Vale posted a fourth-quarter net loss of $2.65 billion, or 51 cents a share, compared with a profit of $4.67 billion, or 91 cents, a year earlier, the Rio de Janeiro-based company said today in a regulatory filing. Earnings before interest, taxes, depreciation and amortization, or adjusted Ebitda, declined to $4.39 billion, missing a $4.79 billion average estimate by 14 analysts compiled by Bloomberg.

Last year brought “big challenges” for the company, Chief Executive Officer Murilo Ferreira said on a conference call with reporters tonight after the report was released.

Ferreira is selling assets, cutting investments and writing down unprofitable projects as falling metal and mineral prices led last year to its lowest annual profit since 2009. The company failed to boost iron-ore output in 2012, ceding its title as the world’s second-largest miner by market value to Rio Tinto Group in October and losing market share to its Australian rivals.

[Sudbury]Mining to recover in 2013, board predicts – by Carol Mulligan (Sudbury Star – February 21, 2013)

February 21, 2013

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

New developments in the mining industry in 2013 will contribute to a predicted 1.7% growth in real gross domestic product in Sudbury, up from 0.6% in 2012, according to the Conference Board of Canada.

Sudbury was second from the bottom in economic performance of 28 census metropolitan areas last year, but the board is forecasting it will move up to 22 in 2013. GDP is a measure of the overall economic activity — the value of goods and services produced — within an economy.

Sudbury’s economy was held back last year by significant declines in several sectors, said Jane McIntyre, an economist with the Conference Board of Canada. McIntyre collects data for several cities, Sudbury among them.

In 2011, there was strong growth in the primary and utilities sector, mostly mining, as Vale recovered from the effects of a year-long strike by United Steelworkers.

Weaker metal prices last year, as well as the temporary shutdowns early in the year at Vale mines and the closing of the Frood portion of Frood-Stobie Mine at the end of the year, took a “chunk” out of that sector in 2013.

Silver Wheaton-Vale deal underscores opportunity amid mining firms’ suffering – by Peter Koven (February 7, 2013)

February 7, 2013

The National Post is Canada’s second largest national paper.

As mining companies suffer through rough market conditions, their royalty and streaming counterparts are taking advantage and striking the biggest deals in their history.

“We are busier than we’ve ever been,” said Randy Smallwood, chief executive of Silver Wheaton Corp. “And what’s more important is the quality of the assets that are being brought forward to us is better than I’ve seen in the past.”

This week, Vancouver-based Silver Wheaton announced a US$1.9-billion acquisition of gold streams from mining giant Vale SA of Brazil. It is by far the largest metal streaming deal ever done, surpassing the US$1-billion transaction between Franco-Nevada Corp. and Inmet Mining Corp. that was reached less than six months ago. The Vale deal also includes 10 million Silver Wheaton warrants.

Miners are turning to companies such as Silver Wheaton and Franco-Nevada for financing for a couple of reasons: issuing equity is extremely difficult and dilutive in this market, and capital cost pressures have made it more important than ever to share the financing risk on large projects. The fact that an enormous company such as Vale is giving up future cash flow to secure capital shows how challenging it is for the industry right now.

It wasn’t always this way for Mr. Smallwood. When he took over as CEO in April 2011, Silver Wheaton could not get a deal done with anyone. Precious metal prices were soaring at the time, and companies were demanding far too much money in exchange for their future gold and silver output.

Vale strikes gold deal – by Star Staff (Sudbury Star/Reuters – February 6, 2013)

February 6, 2013

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

Vale agreed Tuesday to sell 70% of the gold produced at its Sudbury mines over a 20-year period to Vancouver-based Silver Wheaton in a deal worth $570 million.

Silver Wheaton will also pay $1.33 billion for 25% of the gold produced at the Salobo mine in Brazil over its mine life, the companies announced. In total, the deal is worth $1.9 billion in cash. The Sudbury gold stream covers six producing mines — the Coleman, Copper Cliff, Creighton, Garson, Stobie and Totten mines — and one development mine, the Victor project.

From 2013 to 2015, the Sudbury mines are expected to average attributable production of approximately 30,000 ounces as the Totten mine gradually reaches full production. Gold production is expected to peak once the high-grade Victor deposit begins production.

The deal will immediately boost Silver Wheaton’s production by adding expected average gold production of 110,000 ounces of gold per year over the next 20 years, or 5.9 million silver equivalent ounces. The move into gold is a departure for Silver Wheaton, which has focused almost exclusively on silver stream financing deals.

“While we have traditionally focused on silver, we have never been averse to strategically adding ‘the right’ gold streams to our portfolio,” said Chief Executive Randy Smallwood in a statement.

Vale Brazil – Carajás Iron Ore Mine – by Will Daynes (Business Excellence – January 30, 2013)

January 31, 2013

Business Excellence is a global on-line publication portal for businesses who have stories of excellence to tell: http://www.bus-ex.com/

Simply ore-inspiring

The most widely used of all minerals, iron accounts for approximately 95 percent of the world’s metal production in terms of weight. As the world’s third largest iron ore producer and exporter, Brazil has long reaped the financial benefits provided by one of its largest export products.

The Carajás region of the country boasts some of the richest reserves and concentrations of iron ore anywhere on the planet, with the Carajás Mine, located in the state of Pará in Northern Brazil, holding the distinction of being the world’s largest iron ore mine. Fully owned by Vale, the mine holds up to 7.2 billion metric tonnes of iron ore in proven and probable reserves.

The Carajás Mineral Province was originally discovered entirely by accident when a US Steel helicopter was forced to land on a hill in the area to refuel in 1967, with the first iron ore mine called N4E Mine coming into operation in 1985. In the mine’s first year output reached one million metric tonnes of iron ore, which was processed at a semi-industrial plant. During the second year an industrial-scale processing plant was brought online and this resulted in production rising to 13.5 million metric tonnes of final product.

Mining operations in Carajás are open-pit, with 15-meter-high benches. The off-highway trucks that Vale uses, each capable of carrying loads of over 240 metric tonnes, unload ore at crushing facilities located inside the mines. After this, the material is transported on conveyor belts for further processing.

Vale Pledges to Deliver Growth After Losing Title to Rio Tinto – by Juan Pablo Spinetto (Bloomberg.com – January 29, 2013)

January 30, 2013

http://www.bloomberg.com/

Vale SA (VALE3) pledged to deliver on its growth projects after losing to Rio Tinto Group the title of the world’s second-largest mining company and failing to boost production of the steelmaking ingredient.

Vale is “confident” it can deliver on its expansion plans and that will eventually be reflected in its share price, Chief Financial Officer Luciano Siani told investors yesterday at an event in Rio de Janeiro, where the company is based. Doubts may still remain among investors about Vale’s capacity to fulfill its promises, he said.

“Why Rio Tinto has today a higher market value than Vale if its iron-ore production is much lower? Because Rio Tinto has delivered iron-ore growth and we haven’t,” Siani, 42, said. “Vale has an incredible latent value and its management is absolutely committed to deliver and reveal that value.”

Vale, the world’s largest iron-ore producer, in October was surpassed by London-based Rio Tinto, which is currently valued $5.6 billion more than its rival, according to data compiled by Bloomberg. The Brazilian company is cutting investments, seeking partners and writing off nickel and aluminum assets after shares slumped to the lowest in almost three years in September amid weaker demand from China and Europe.

UPDATE 2-Vale sees iron ore at $110-$180/Tonne – CFO – by Jeb Blount and Leila Coimbra

January 30, 2013

http://www.reuters.com/

RIO DE JANEIRO, Jan 29 (Reuters) – Emerging-market demand for iron ore, which accounts for 90 percent of the profit at Brazilian miner Vale, will keep prices between $110 and $180 per tonne over the long term, Chief Financial Officer Luciano Siani said Tuesday.

Vale has struggled with falling iron ore prices , which touched three-year lows in September of 2012 and forced it and other big miners to reassess the costs of holding on to unprofitable operations.

Earlier on Tuesday, miner Anglo American announced it would take a $4 billion writedown on its Minas Rio iron ore project in Brazil.

Mining giant Rio Tinto ousted its chief executive, Tom Albanese, on Jan. 17 after it took $14 billion in impairments tied to its underperforming Mozambican coal and Canadian aluminum operations.

Analysts say Vale has had its share of problem investments ranging from its Rio Colorado potash project in Argentina to its massive Simandou iron ore project in Guinea. When asked about those projects, Siani said Vale was “not afraid to write off non-performing assets.”

He said during a meeting of institutional investors in Rio de Janeiro that the company plans to reduce its 50 percent stake in the CSP steel mill project in the northeastern city of Pecem, in which South Korea’s Dungkuk holds 30 percent and Posco the remaining 20 percent.

[Sudbury] Union presses for safety probe – by Carol Mulligan (Sudbury Star – January 26, 2013)

January 28, 2013

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

The result of a Ministry of Labour investigation into the Jan. 29, 2012 death of Vale miner Stephen Perry confirms the need for an inquiry into mine safety in Ontario, says the president of the union to which Perry belonged.

Rick Bertrand, head of United Steelworkers Local 6500, repeated the call for an inquiry originally made after the investigation into the deaths of Stobie miners Jason Chenier, 35, and Jordan Fram, 26, on June 8, 2011.

The labour ministry released its summary report on Perry’s death Friday, saying it would not be laying charges under the Occupational Health and Safety Act. In the Stobie deaths, 15 charges were laid by the ministry against Vale and one of its supervisors, under that same act, and they are proceeding through the court system.

Bertrand said the labour ministry’s investigation confirmed a finding of the union’s joint investigation with Vale into Perry’s death at Coleman in Levack. “Stephen Perry was killed even though he did everything right at work that day,” said Bertrand. “This tragedy re-confirms there is more we can, and must, do to prevent workplace deaths.”

Company Returns Assured by Government in [Brazil] Rail Expansion – by Christiana Sciaudone – (Bloomberg.com – January 11, 2013)

January 21, 2013

http://www.bloomberg.com/

Brazil’s $45 billion railroad expansion is targeting ALL America Latina Logistica SA (ALLL3) and Vale SA (VALE)’s duopoly by guaranteeing returns for companies that create train lines and transport cargo.

Highway operator TPI-Triunfo Participacoes & Investimentos (TPIS3) SA and logistics group JSL SA (JSLG3) have said they may take part in the April auction for the rights to operate lines or handle cargo on 10,000 kilometers (6,200 miles) of new railways. The government says the nation’s biggest rail expansion since the 1930s will lure 91 billion reais ($45 billion) of investments.

President Dilma Rousseff, seeking to stimulate the economy and upgrade infrastructure after a decade without investment, will auction off ports, airports and roads to ease bottlenecks in Brazil, the world’s largest exporter of iron ore, orange juice and sugar. The government ran the 28,000 kilometers of railways until it privatized the lines in 2007. ALL and Vale now control 84 percent of the network.

“There is a lot of space for this sector to grow,” Roger Oey, an analyst at Bes Securities, said by telephone from Sao Paulo. “If there is any uncertainty, the government will try to diminish this for the projects to be successful, especially in the beginning.”

As part of the plan announced Aug. 15, the government vowed to sign contracts for all of the new capacity, Transportation Minister Paulo Sergio Passos said. Companies will either operate the rail lines or transport cargo, but not both. Additional terms will be released in March.